Equity Release on Right to Buy House

csgohan4

poppy10 wrote: »

But no legal duty to provide that care

Well they usually will provide care, if you have assets above a certain threshold, they will put a charge on your property e.t.c

antrobus

poppy10 wrote: »

But no legal duty to provide that care

That's not what it says here;

The local authority will identify your care needs and check that they meet a nationally agreed set of criteria.

If you qualify for help, they have a legal duty to provide or arrange the services you need.

https://www.moneyadviceservice.org.uk/en/articles/local-authority-funding-for-care-costs-do-you-qualify

Or here;

If you have eligible needs, your local council has a legal duty to meet them.

https://www.ageuk.org.uk/information-advice/care/arranging-care/care-needs-assessment/

antrobus

csgohan4 wrote: »

Well they usually will provide care, if you have assets above a certain threshold, they will put a charge on your property e.t.c

The LA will carry out a financial assessment. Unless you tell them that you have over £23k (whatever it is) worth of assets, and accept liability. Whatever you are liable for, they will bill you for. And, yes they will put a charge on the property if all else fails.

However in the OP's case, their "75 year old mum lives in a council house" and doesn't appear to have any assets. Which is why I don't understand why they need this 'cunning plan'. If mum really needs "care and social support" the LA should provide that care at nil cost to mum.

Obviously I don't know what care needs mum has, so I don't know whether the process would produce the desired result. But that is the process.

P.S. And going through the LA is a better plan. My LA would charge £6,500+ a year for an hour a day. It would be more if you went direct to an agency. Their £4,000 a year won't go far.

klimbo

Well right now - I surmise the state would pay for her consideration as she doesn't have any capital.

Mcgough221

Speaking from personal experience here. It’s lovely you want to help your mum and ensure she has everything she needs, we certainly don’t see enough of it. But please consider the extra issues this could cause.

To many tines I have see elderly people with health and social care needs have their houses sold to pay for their care and the stress this causes is often too much. They blame them selves and honestly worry about their children and inheritance. I have a feeling the worry of paying you back your 30k could put a lot of pressure on your mum.

Right now she would get all her care needs paid for her. I wouldn’t change anything. This means your mum will have nothing to worry about and get the care she needs. If things are not working right now please contact her social worker if she has one and arrange another assessment. I don’t know what your mums care needs are but there are a lot of services out there available such as groups, day centres, respite care, home care etc. She could just need a simple adjustment to her care package.

If the time comes and your mum needs to be in a setting where she has 24hr care available you can then choose to “top up” to a setting that meets her needs. If you buy this house even if you get past year 5 the most the proceeds from the house would last is a few years at full rate care( Give or take depending on type of care needed) Is it work all the stress and hassle?

Care here where I am ranged from £500 per week to £1200 per week with extras to pay for such as outings, clothes, continence products (only a portion is prescribed rest is top up) toiletries etc.

I can’t help you with your question about equity release as I know nothing about that side. Hope this helps. Good luck.

DoryMB

I was told we had to wait for 5 years before we could apply for equity release on our Right to Buy council house. 

HampshireH

RTB is not a banking facility and shouldn't be seen as one.

Your mum is FAR better off in her council house which the council will pay to ensure is safe and fit for habitation. The council will do all her repairs. The council can support with any applications for social services. The council will turn up when the boiler needs replacing.

You have said you mum has no money. Imagine having a ball and chain around your neck that looked like a 30k debt to someone and then knowing you also owed money on the house for equity release.

How will she pay for any of the above when something breaks down? She would also have all the insurance costs to cover for the property.

And may feel trapped and isolate possibly even a burden if she does need to go into a care home or have paid for care later on.

I genuinely cannot see how this benefits her at all. I can see the benefits to anyone due an inheritance.